Scottish Wildlife Trust
FAQs
Natural Capital
1. What is natural capital?
Natural capital can be defined as the world’s stocks of natural assets which include geology, soil, air,
water and all living things. It is from this natural capital that humans derive a wide range of services,
often called ecosystem services, which make human life possible.
2. Is there a need to value nature in economic terms?
At the moment, nature is often economically invisible, which is one of the main drivers for its
destruction. With financial capital, when we spend too much we run up debt, which if left unchecked
can eventually result in bankruptcy. With Natural Capital, when we draw down too much stock from
our natural environment we also run up a debt which needs to be paid back. If we keep drawing
down stocks of Natural Capital without allowing or encouraging nature to recover, we run the risk of
local, regional or even global ecosystem collapse.
3. Isn’t nature priceless?
Nature may be priceless, but it is not valueless. There is now a broad acceptance that as long as the
value of nature remains invisible in economic decision-making, corporate and state sectors will
simply continue to generate financial profits through running up a massive natural capital overdraft.
4. What is natural capital accounting?
Natural capital accounting is an emerging concept which sees businesses and governments measure
their use of – and their impact on - natural capital (in either financial or non-financial terms). They
can then use this information to help better manage these environmental impacts.
5. Why do some people worry that this is about nature being privatised?
Valuing natural capital can be a complex subject; as such it is easily misunderstood or
misrepresented. Natural capital accounting is about measuring our impact on our natural
environment in order that we, as a society, can make better decisions that will protect it. Some
people worry that it will lead to the buying and selling of natural assets. The reality is that timber,
meat, minerals and so on are already traded but the costs of producing or extracting them remain
largely invisible. Natural capital, by contrast, looks at the full value – and not the just the market
value – of the benefits we derive from nature. Smarter choices with regard to use of natural
resources will lead to better outcomes for society, the economy and ultimately global biodiversity.
6. Why do we need to work with businesses?
As environmentalists, we can’t solve these problems alone. Business activities impact hugely on the
natural environment so, to make a real difference and address these impacts in a meaningful way,
there needs to be an open discussion between environmentalists, business leaders, governments
and others, so that the corporate world becomes part of the solution. An increasing number of
businesses are aiming to make a net positive contribution to our natural capital, for the benefit of
biodiversity, the economy and society.
7. Why does Scottish Wildlife Trust believe natural capital is something we should take seriously?
Natural capital is a critical asset to society’s health and wellbeing but ecosystems continue to be
degraded and species continue to decline both globally and closer to home in Scotland. Society
urgently needs to gain a better understanding of the impacts it has on the world’s rapidly
diminishing natural resources. The Scottish Wildlife Trust believes it is necessary to work with
businesses and governments alike to help develop and implement robust methodologies for
accounting for natural capital.
8. What do other environmental organisations think?
A host of leading environmental organisations were involved in the World Forum on Natural Capital,
including the United Nations Environment Programme, International Union for Conservation of
Nature, The Wildlife Trusts, WWF, Conservation International, The Nature Conservancy, World
Resources Institute, The Convention on Biological Diversity, The Prince’s Accounting for
Sustainability Project, Endangered Wildlife Trust and GLOBE International. The story behind the
event, which was organised by the Scottish Wildlife Trust to help protect nature, is here:
(http://www.naturalcapitalforum.com/the-story-behind-the-event). Some perspectives on natural
capital from the world of conservation are listed in the appendix to this briefing.
9. How do we manage the risks?
It is vitally important that all stakeholders are involved in the debate around natural capital and
natural capital accounting mechanisms so that conservation goals, human rights and economic
objectives are all taken into account. We need to avoid poorly designed systems and processes that
don’t take into account all of the values that nature provides or have unintended consequences that
further deplete natural resources or negatively impact on indigenous people . The key is not only to
measure the total value of our natural capital, but also to measure how benefits are distributed. This
requires transparency and collaboration.
10. What is the vision of the Scottish forum on Natural Capital?
The Scottish Forum on Natural Capital brings together public, private and voluntary sector
organisations that seek to protect and rebuild Scotland’s natural capital. The vision is of:
 A Scotland in which all parts of society, including companies, NGOs, the Government, public
bodies and communities, recognise our reliance on natural capital and the impact we have
on it
 A Scotland in which an understanding of our relationship with natural capital leads to action
to protect and rebuild it
 A Scotland which is exercising leadership to galvanise action both here and beyond
Scotland’s borders More information can be found at: www.naturalcapitalscotland.com